(Community Matters) While they are futzing away, the largest bank failure in history occurred. here Not that Washington Mutual didn’t deserve to fail, wiping out shareholders and bondholders. It was imprudent in its lending (mortgages and credit cards) to unqualified buyers. Nevertheless, the continuing credit squeeze places too many financial institutions at risk. Kudos to the fed for engineering the seamless transfer of deposits to JPMorgan without calling on FDIC reserves. The numbers don’t immediately add up in my head but it’s been a long day.
Let’s hope House Republicans really are standing up for the best terms for taxpayers rather than playing politics, the cost of which could include short & long term economic health, jobs and pensions.
Community Matters 